Lawmakers propose lodging tax hike in Etowah Co.

Friday

The local legislative delegation has begun advertisement of a bill that would increase lodging tax in Etowah County by 3 percent.

The act “shall be known and may be cited as the Etowah County Mega Sports Complex/Little Canoe Creek Megasite Promotion Act” according to the summary being advertised.

As advertised, the bill would give the money to the Etowah County Commission, to split evenly between the Etowah County Tourism Board – “which may be further allocated for the Etowah County Mega Sports Complex if the board determines additional construction of the complex is feasible, or for the promotion of tourism.”

Half of the net proceeds from the 3 percent tax would be distributed to the Etowah County Economic Alliance to be used for salaries, for daily operations and for the advancement, development and promotion of the Little Canoe Creek Megasite. Twelve years after the levy of the tax or after the Little Canoe Creek Megasite is sold, leased or otherwise under a state project agreement, the Economic Alliance, by majority vote of the members, may allocate this revenue for industrial recruitment and other economic development projects.

Greater Gadsden Area Tourism Executive Director Hugh Stump said more money to promote tourism would be a good thing for Etowah County, and lodging taxes are a good way to generate it.

“It sounds like it’s a good idea,” Stump said, qualifying that he has not seen the proposed bill.

And when they see lodging taxes added to their bill, they don’t cancel the room, because all the hotels in the area will be charging the same amount of lodging tax.

This is a tax, he said, that benefits the people of Etowah County, but 99 percent of the time or more, would not be paid by the people of Etowah County.

“Our delegation made a commitment that we would look for revenue ideas to more adequately fund the Sports Complex and also help bring jobs to Etowah County — without burdening our taxpayers,” Sen. Andrew Jones, R-Centre, said. “Etowah County residents will generally not pay this tax.

“There is a symbiotic relationship between tourism, economic development and lodging,” Jones continued, in a statement. “Tourists and business travelers drive hotel occupancy, and in return, we hope that lodging tax proceeds can help drive more tourism and economic development.”

“It’s going to be paid by outsiders,” Stump said of the tax. Hoteliers don’t pay the tax, the guests do, he said. Using money gained through tourism to promote tourism is something he supports.

Even a portion of the money going toward economic development is a related function. Economic development brings in a lot of visitors, contractors, builders, etc., Stump said, who will stay in local hotels.

Jones said business travelers generally account for 40 percent of hotel guests.

Etowah County’s current lodging tax is 12 percent, plus a charge of $1.50 per room, he said.

A 3 percent increase will bring it to 15 percent.

Jones said DeKalb County’s lodging tax rate is 14 percent, while Birmingham and Mobile have higher rates than the 15 percent this bill would impose in Etowah County.

“There are many cities in Alabama that charge that and more,” he said. In larger cities and tourist areas, Stump said, the rates can be substantially more — up to 21 percent.

The advertisement of a bill is required before it can be introduced in either house of the Legislature.

Rep. Becky Nordgren, R-Gadsden, again advertised a summary of a bill regarding the sports authority:

“to transfer all authority for the feasibility study relating to funding and the construction, operation, and maintenance of a mega sports complex in the county from the Etowah Mega Sports Complex Authority to the Etowah County Tourism Board;

“to change the distribution of certain lodging and sales and use taxes from the Etowah County Mega Sports Complex Authority to the Etowah County Tourism Board;

“to provide for the transfer of all assets and liabilities of the Etowah County Mega Sports Complex Authority to the Etowah County Tourism Board and provide for the dissolution of the authority;

“and to repeal Section 45-28-220.03, relating to membership, powers and duties of the Etowah County Mega Sports Complex Authority.”

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